TRADE IN THE ERA OF DIGITALIZATION AND MARKETING: E-COMMERCE AS A CHALLENGE TO THE TRADITIONAL RETAIL MODEL
Abstract: Traditional retail models, based on the physical presence of sellers and customers, have dominated commerce for decades. These models enabled direct communication, product inspection, and purchasing decisions shaped by personal impressions, while relationships between buyers and sellers were built on trust and face-to-face interaction. However, rapid technological advancements, the widespread use of the Internet, and the proliferation of smartphones have driven significant digitalization in the retail sector, leading to the emergence of e-commerce as a major sales channel. E-commerce offers consumers greater accessibility to products and services, lower prices, faster product comparisons, and a broader selection on a global scale. Simultaneously, traditional models are evolving to integrate digital elements such as online platforms, delivery and pick-up services, loyalty programs, and personalized communication via email, social media, and chatbots. This article aims to provide a comparative analysis of traditional and online sales, with a specific focus on consumer behavior in Bosnia and Herzegovina (BiH) and the European Union (EU). The analysis examines similarities and differences in purchasing habits, levels of digital literacy, consumer preferences, and challenges, with an emphasis on perceptions of security, pricing, service quality, and customer support. Survey results, conducted simultaneously in BiH and the EU with samples of 100 respondents each, indicate that e-commerce is not universally superior; its effectiveness depends on factors such as digital literacy, market maturity, and consumer habits. Physical stores (traditional/classical) retain relevance but require adaptation to digital-age demands. The optimal strategy lies in hybrid models that combine the speed and convenience of e-commerce with the trust and personal engagement of traditional shopping. This research provides a foundation for future studies on consumer behavior in digital contexts and offers guidance for businesses seeking to refine sales strategies in response to technological and societal change.
Keywords: e-commerce, traditional retail, consumer behavior, digitalization